Page 245 - F1 Integrated Workbook STUDENT 2018
P. 245
IAS 2, 8, 10, 34 and IIFRS 8
Exxampple 5
Durring 20X1 Beta discoovered thatt certain prroducts thaat had beenn sold during
20XX0 were inccorrectly inncluded in inventory aat 31 Deceember 20XX0 at $6,5000.
Betta’s accounnting recorrds show thhe following results foor 20X1 annd 20X0:
20X1 20X0
$ $
Revvenue 104,0000 773,500
Cosst of sales (86,5000) (5 53,500)
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Proofit before ttax 17,5000 220,000
Incoome tax exxpense (5,2500) (6,000)
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Proofit for the pperiod 12,2500 14,000
In 220X0 opening retaineed earningss was $20,000 and cclosing retaained
earrnings was $34,000. TThe incomme tax rate is 30%.
Reqquired:
Shoow how thhe correction of thee prior period error wwill be reccorded in tthe
finaancial stattements foor the yeaar ended 331 Decembber20X1.
Commparativees should also be prrepared.
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